The Consumer Council has taken restaurant and fast food chain operators to task for engaging in malpractices against consumers in the sale of coupons offering price or food benefits.
The operators were alleged to have adopted misleading practices to lure unwary customers into buying such coupons. Further, allegations were raised against them for the use of unfair terms and unilateral practices in altering the terms and conditions of the coupons.
More operators are now joining the ranks of restaurant and fast food chains in offering a diversity of benefits including price discounts, food redemption or membership reward schemes, etc. The intention is to promote customers' loyalty to return for more purchases.
But the undesirable practices adopted by some operators have clearly defeated the purpose and become the source of consumer's dissatisfaction and disputes.
In 2012, the Council received 19 complaints in relation to such disputes, a slight increase of 4 cases over 2011.
A typical case involved a Mr. Chan, enticed by a benefit scheme of a chain restaurant, paid a $35 fee and received, in return, a membership card and some coupons. To his dismay, he found the use of these coupons fraught with problems.
For instance, one coupon was supposed to be valid for use from 11 am but the food designated could only be redeemed after 9 pm. Another coupon was open for use on two festival holidays but it turned out it was a choice between the two, not both.
Originally, purchase with membership card is entitled to reward of free food items at any time. But new restriction was later imposed requiring purchase only at certain periods of time or up to a certain amount before redemption of benefit.
Mr. Chan was indignant at the restaurant practice in habitually changing the details related to the reward of benefits without prior notification of members.
In another case, a Mr. Lee, a loyal customer of a restaurant, became a member and received 3 coupons offering (1) "buy one get one free"; (2) "$50 discount for $300 spending"; (3) "$20 reduction for $200 consumption" respectively.
A few weeks later, he and his family went for meal at the restaurant. He enquired about details of the "buy one get one free" offer, and was explained that all he needed was to order double portions of every dish priced at $28 or below each. His dinner bill came to a total of $700 plus.
He tried to settle the bill with the coupon but, to his utter surprise, he was allowed only a $28 reduction. Thereupon, he protested but was told that the offer "buy one get one free" actually means: buy one meal and get one dish for free - which is $28! It does not mean half price.
Mr. Lee felt that the coupon was so worded to deliberately mislead consumers. Further he had tried to ascertain the details of the offer beforehand and no mention was made of the benefit restricted to only one free dish.
In yet another case, a Ms. Cheung was strongly persuaded by a waitor to take a set meal for 2 at $288. But she would need to become a member - by paying $400 which could be used to cover her meal plus a membership card which would entitle her to 10% discount for spending at the restaurant.
After due consideration, she took the offer and paid the sum of $400. In return, she received only a $100 coupon; she assumed that the remaining $300 went to cover the cost of the set meal. She did enquire to ascertain that the use of the coupon would not entail any more payment. She was assured that would be all.
When the bill came, she was totally baffled to find a sum of $288 still outstanding. The restaurant contended that the original price of the set meal was actually more than $500. To avoid embarrassment to her family present, she paid the bill and left in a haste.
Ms. Cheung believed the restaurant had deliberately misled her to become a member, despite her repeated enquiries beforehand. Only after she had finished her meal was she told a different version.
In this (June) issue of CHOICE is contained a set of comprehensive guidelines to help consumers avoid the pitfalls in the purchase and use of such coupons or vouchers.
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